Asian stocks rose, with the Hang Seng Index erasing its loss for the year, after China inflation quickened to the fastest pace in four months. Casino shares dropped in Hong Kong.
Japan’s Nikkei 225 index dumped 129.20 points, or 0.9%, to 14,994.80
The Hang Seng Index in Hong Kong regained 198.27 points, or 0.9%, to 23,315.74, amid optimism that Chinese policy makers will act to counter the nation’s economic slowdown.
LG Display, a supplier of panels for Apple Inc., jumped 6.4% in Seoul after Macquarie Group Ltd. recommended the stock. Mitsubishi UFJ Financial Group Inc. added 1.2% after Bank of America Corp.’s Merrill Lynch unit recommended buying the shares.
SJM Holdings Ltd. sank 5.2% in Hong Kong as casino operators slid amid speculation a crackdown on the use of China UnionPay Co.’s debit cards will curb money flows to the world’s largest gambling hub.
Nine Dragons Paper Holdings Ltd. surged 6.6%. Citigroup Inc. said China central bank’s cut in reserve requirement ratios will help the paper-making sector by improving liquidity.
LG Innotek Co., which supplies camera modules for smartphones, jumped 7.6%, the highest close since February 2011 and the biggest advance on the MSCI Asia Pacific Index today. HI Investment & Securities Co. raised its share-price forecast on the stock to 180,000 won from 140,000 won and maintained its buy rating.
Mitsubishi UFJ gained 1.2% in Tokyo. Merrill Lynch raised its stock rating to buy from neutral, saying the bank is one of its top share picks because of its earnings outlook.
Casino stocks fell in Hong Kong today. The Macau Monetary Authority ordered jewelry shops and pawnshops operating on casino floors to remove their UnionPay card terminals by July 1, according to the head of SJM, the city’s biggest casino operator. The banking regulator didn’t immediately reply to an e-mail or answer calls seeking confirmation.
Galaxy Entertainment Group, founded by billionaire Lui Che-woo, dropped 1.5%. Wynn Macau Ltd. declined 4.6%.
CHINA
The Shanghai CSI 300 gained 26.99 points, or 1.3%, to 2,161.27
China consumer prices rose by 2.5% in May from a year earlier in China after expanding 1.8% in the previous month, the National Bureau of Statistics reported today. Economists surveyed by Bloomberg were expecting a 2.4% increase.
Beijing has set a full-year target of 3.5% inflation, which leaves room for more monetary easing. Producer prices fell 1.4% last month, according to the report. Economists had predicted a 1.5% decline.
The People’s Bank of China announced a cut in reserve requirements for some banks yesterday, with leaders in Asia’s largest economy seeking to bolster domestic demand amid slowing growth.
In other markets;
In Korea, the Kospi index took on 21.76 points, or 1.1%, to 2,011.80
Singapore’s Straits Times Index lost 11.38 points, or 0.3%, to 3,293.82
In Taiwan, the Taiex index added 59.63 points, or 0.7%, to 9,222.37
In New Zealand, the NZX 50 ditched 7.95 points, or 0.2%, to 5,179.40
The Australian S&P/ASX 200 index advanced 5.62 points, or 0.1%, to 5,469.65
